The global economic crisis continues to be a worry, more so for the impact on the livelihood of ordinary people in the streets. The official word coming out of Tokyo that the world’s second most powerful economy is now in recession mode will only add to the concern that the recovery from the financial meltdown will be anything but easy—jobs and homes may be lost, economic growth may slowdown thereby adversely affecting development, food prices are already climbing and worst still, the commoners will suffer the most. Even as the corporate world look up to governments for financial bailouts and support system, it is all but clear that market capitalism as an ideology including its principles and practice needs a mid-course correction. While the United States (at least under the Republican lame duck President George Bush) continues to be in denial mode vis-à-vis the inherent vice present within capitalism itself, at least some within the western world, most notably France under President Nicolas Sarkozy, has not only admitted to the weakness in the present free market system but has also taken the lead in calling for reforms in the global financial system.
Clearly, the arguments for a ‘free market’ and the infallible tag attached to western capitalism are now under serious question. Even the bailout packages are being bitterly opposed by ordinary taxpaying citizens in a first world country like the United States. More and more Americans are angry that the corporate leaders have not been held accountable for the crisis and that such bailouts only aid in legitimizing the unethical practices of CEOs and corporate America—those who have enjoyed windfall profits, huge salary packages and undiluted incentives. It seems that the billions of dollars spend without appropriate checks and balances are at the root of the current crisis. It is important not to lose sight of the cause factor/s that has led us to where we are now.
While one may not be an expert on economic theories or western capitalism, what is striking about the global economic crisis is that it is as much a crisis of confidence as it is about a moral human failing. It is easier to scan the surface—of wrong policies, crashing stock markets, mortgage crisis, bankruptcy leading to new acquisitions and mergers, job cuts, liquidity crunch and recession. Yet it will be far worse if we miss the human failings—of those who have given in to greed, remained unaccountable, misusing leadership positions. Simply put the few who for their own gain has only brought about misery to the many. While a global effort is urgently needed in order to reform the financial system and the flawed practices within capitalism, nevertheless, any correction without involving a moral makeover will only lead to further failings. This applies to the management practices and leadership qualities in different fields of activity—social, political, economic or religious. It is therefore of fundamental importance to have honest, capable and committed leaders side by side with strengthening good management practices and ensuring good governance at all levels—not to forget good human values.
